Question

Sales made to Ahmed on credit should be debited to?

(a) account receivable (b) Cash (c) account receivable-Ahmed (d) Sales​

Answer 1

Answer:

(c) Account Receivable-Ahmed .....

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Answer 2

A credit sales made to Ahmed can be debited to option (c) Account Receivable-Ahmed.

What is credit sales and why it is made to Ahmed?

• When purchase is made by the customer and their payment is delayed then it is termed as credit sales.
• According to the personal account rule "Debit the Receiver" Ahmed's account will be debited.
• The Journal Entry for credit sales to Ahmed is:                                                                          Ahmed's account                             Dr

            To Sales account

       (Sales made on credit to Ahmed)